TechFlow news, December 13 — According to crowdfundinsider, the U.S. Office of the Comptroller of the Currency (OCC) has just conditionally approved trust bank charters for Ripple, BitGo, Fidelity Digital Assets, Paxos, and Circle.
A "conditional approval" is a preliminary form of recognition indicating that the OCC has reviewed the applications and determined the companies generally meet regulatory requirements—such as capital adequacy, risk management frameworks, and business plans—but it is not a final license. The companies must fulfill specific conditions within a specified timeframe to transition into full operation. Once all conditions are met, the OCC will issue a final, unconditional national trust charter, allowing the firms to immediately exercise trust bank powers, including expanding core operations by serving as trustees managing client assets, processing payment settlements, holding digital assets in custody (such as stablecoin reserves), and offering related financial services. However, a trust charter differs from a full-service bank; these institutions cannot accept deposits or make loans. They may apply for a Federal Reserve master account, enabling faster clearing and access to the traditional financial system, further advancing the integration of crypto with traditional finance.
